Month: January 2023

Biocon sells another 10% stake in Syngene to fund Viatris acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Four crore shares of Syngene International – the research arm of Biocon Ltd. exchanged hands in a large trade on Wednesday. The number of shares exchanged amounts to 9.97 percent of the company’s equity

CNBC-TV18 had reported on Tuesday that Biocon planned to sell 10 percent stake in Syngene in order to fund the Viatris deal.

This is the second instance of Biocon selling stake in Syngene after the first one in September last year where it sold over 5 percent stake.

At the lower end of the price band, Biocon planned to fetch Rs 2,240 crore from the deal.

Before the transaction took place, Biocon held 64.8 percent stake in Syngene.

Biocon planned on selling further stake in Syngene to fund the cash component of its buyout of Viatris’ global biosimilar business. The company had already secured $1.2 billion in debt and the rest was supposed to be funded by a combination of Biocon and Serum Institute of India.

The company had earlier indicated that it will look to replace the mezzanine financing with private equity players and a further stake sale in Syngene.

Siddharth Mittal, Managing Director and CEO, Biocon, had told CNBC-TV18 in an earlier interaction, “We do not expect to divest any more stake in Syngene.”

Shares of both Syngene and Biocon have opened with gains of 2 percent each. While shares of Biocon are rebounding from close to 52-week lows, shares of Syngene have corrected more than 17 percent from their peak.

Also Read: Shares of Biocon’s research arm drop after December quarter revenue growth misses estimates

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Former law minister Shanti Bhushan passes away at 97

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former Union law minister and eminent jurist Shanti Bhushan, who fought the case that led to the disqualification of then prime minister Indira Gandhi in 1975, died in New Delhi on Tuesday. He was 97.

A source close to his family said he was not keeping well for some time and died at his home in Delhi.

In the historic Raj Narain vs Indira Nehru Gandhi case, the Allahabad High Court in June 1975 had disqualified Gandhi for a period of six years from contesting elections over alleged corrupt electoral practices. Bhushan had represented Raj Narain.

Gandhi had moved the Supreme Court against the high court verdict. It triggered a series of events culminating into the imposition of Emergency on June 25, 1975.

Bhushan, who was also a senior advocate, served as the law minister from 1977 to 1979 in the Morarji Desai cabinet.

In his political career, he was a member of the Congress (O) and later of the Janata Party. He served as a Rajya Sabha member too. He also had a six-year stint with the BJP.

A vocal activist and jurist, Bhushan was also part of the anti-corruption movement that led to the formation of Aam Aadmi Party. He later quit the party.

PM Modi expresses condolences

Prime Minister Narendra Modi said he was pained by Bhushan’s death. “Shri Shanti Bhushan Ji will be remembered for his contribution to the legal field and passion towards speaking for the underprivileged. Pained by his passing away. Condolences to his family. Om Shanti.”

Law Minister Kiren Rijiju also condoled Bhushan’s passing away. “My deepest condolences to the family members on his passing away. My prayers for the departed soul. Om Shanti.”

Bhushan, whose sons Jayant and Prashant Bhushan are leading lawyers, was active in the legal profession till recently and had argued on a PIL in the Supreme Court seeking a court-monitored probe into the Rafale fighter jets deal.

He had filed a plea in the apex court, challenging the roster practice of allocation of cases by the Chief Justice of India.

In November 2010, Shanti Bhushan had stuck to his sensational allegation that there was corruption in the judiciary and had refused to apologise to the Supreme Court asserting he was willing to be jailed for contempt.

Delhi Chief Minister Arvind Kejriwal tweeted: “Shocked and pained to hear this news. The country has lost one of the greatest legal luminaries of our times. God bless his soul.”

Also read: Visakhapatnam to be new capital of Andhra Pradesh, says CM Jagan Mohan Reddy

(With agency inputs)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Levi Strauss’ Amisha Jain on Indian market trends, Lollapalooza and Deepika Padukone

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amisha Jain is a retail veteran. With over 20 years of experience, Jain has worked with brands like Zivame, Nike, and Arvind Group, among others. In 2022, she became the senior vice president and managing director of South Asia-Middle East and Africa (SAMEA), Levi Strauss & Co., where she is responsible for leading the company’s operations, expansion, and growth in the SAMEA market.

Jain shares with Storyboard18 interesting views on the Indian market, especially when it comes to the clothing category.

She says, “Everyone has a perception that India is a price sensitive market. However, we have seen that consumer mindset is now changing from being price conscious to performance conscious. Consumers want to invest in products that are fashionable, but at the same time are also functional and enduring in their relevance.”

In an interview with Storyboard18, Jain also shares why the brand decided to associate with global music festival Lollapalooza’s India debut, how Deepika Padukone is enhancing the brand, and more. Read on.

What made you say yes to a collaboration with Lollapalooza India? What are the opportunities for a brand like Levi’s at an event like this?

Levi’s and music have always been intertwined. In its 170-year-old history, the brand has always had an undeniable presence within the music on and off the stage. This longstanding global association spans community music projects, supporting up-and-coming talent to associations with music festivals.

Also Read: Storyboard 18 Exclusive: ‘Uncertainty Is The Name Of The Game,’ Mark Read, CEO WPP

As a brand, we have always believed that music can be a galvanizing force with the power to connect people across all barriers. Hence, an association with the inaugural edition of Lollapalooza India 2023 seemed like a natural extension to us. Our partnership with Lollapalooza India 2023 is another step towards connecting with a new generation of Levi’s. With this association, the brand aims to be present in the lives of its consumers at moments when they are their true selves, on the lookout for a community to have memorable experiences.

The pandemic did hurt the experiential marketing activities for brands like Levi’s. How did you connect with your audience in the online world? Also, how do you tie it back when events are back on ground?

We have always endeavoured to be where our fans are, that is at the center of culture. The pandemic brought restrictions to all retailers across the globe. Due to numerous restrictions, we maintained a close digital connection with our audience. The focus was on being agile, responding to situations quickly and most important being relevant to our fans. For instance, on 20th May we celebrated the birthday of the blue jean (501 Day) online and realized that the 501 Live music program, entertainment, and interviews from some of our favourite artists brought a lot of joy. We also saw some of our fans and brand friends posting pictures from our past 501 Day events reminding us that the love for the brand is still strong.

Now after 3 years when things are back to pre-COVID levels, we are bringing our customers with live events and Lollapalooza being the first big event of the year. Being a DTC-first brand that’s committed to being everywhere our consumers love to interact and shop, we are still conversing and listening to our consumers on our digital platforms.

In a way, musicians are the OG creators. What are the ways in which you plan to engage with artists, especially in India, this year?

Earlier this year, we unveiled the Levi’s Music Project with artists Ritviz and Kayan. The internationally acclaimed initiative is aimed at empowering more rising artists than ever before thanks to an exciting new digital framework that allows young talent from around the world to connect with professional artists. This year we aim to continue to create opportunities for artists, both new and old through the spirit of innovation, making this collaboration a prime opportunity to partner up with the goal of allowing Levi’s to provide an unprecedented amount of access to music education through content, workshops, and collaborations. Created for artists, by artists.

What are the key consumer trends that have emerged in the apparel category in 2022?

We have also seen a continued acceleration of the casualisation trend across the world. One of the fastest-growing categories currently is a more sportier athleisure look especially for women. Not only this, but today’s fashion consumer is also more inclined towards sustainable fashion and the inclination has only grown post-COVID. To cater to the emerging trends, we are going to go after the complete head-to-toe look and drive a fast expansion across footwear and accessories as well. From a product perspective, we have already launched Levi’s Gold Tab that includes sportier pieces like tank tops, joggers and leggings, and have been employing production techniques that use far less water than traditional methods. In addition to this, we have worked towards more sustainable, more circular products and practices, while developing new business models that reduce waste and extend the life of denim.

As a global apparel brand, how do you see India as a market – in terms of people, trends, and insights?

India is a key market for LS&Co. and, considering the country’s large population, means there is significant untapped market potential. The country’s growing median income earners and robust economy make it an increasingly attractive market for retailers. The consumer, too, is evolving. Today’s consumer is willing to try new things and is willing to spend with brands with which they have a real connection. This has been seen across the board, not only in the larger cities but also in smaller towns.

Moreover, the pandemic has led to a growing casualization trend. Consumers want to wear clothes that are fashionable, yet comfortable. Levi’s offers a full lifestyle proposition to shoppers, with complete head-to-toe looks. One of the fastest-growing categories for women in particular is sportswear, which we offer beyond denim. Also, footwear and accessories will be another category where we are intending to drive expansion. Apart from seasonal collections, we also are proud of our collaborations such as our recent one with Deepika Padukone and we will continue to build on that strategy.

How has the association with Deepika Padukone helped the brand?

Recognizing a shift to casualization and more relaxed ways of dressing, the key focus of our collaboration with Deepika Padukone has been to keep the collection true to Levi’s authenticity and Deepika’s influence on fashion-enthusiasts. The introduction of Padukone’s signature favorites into the collection was a way for us to explore unknown textile territories and also relate to a newer fashion consumer. The collection was well received by consumers. We were able to reach a younger, Gen Z and millennial consumer base with this association, helping us to create a new generation of Levi’s fans. The association also helped us establish that Levi’s goes beyond denim, and has helped us establish us as a true lifestyle brand with head-to-toe collections.

You are a seasoned retail business enthusiast. What makes Indian shoppers interesting to the rest of the world?

Everyone has a perception that India is a price sensitive market, however we have seen that consumer mindset is now changing from being price conscious to performance conscious. Consumers want to invest in products that are fashionable, but at the same time are also functional and enduring in their relevance. In the past few years, the Indian consumer has also become mindful of the choices they are making and have shown an inclination towards sustainable fashion. If you look at our collections, while it appeals to a more cutting-edge fashion, Levi’s products are thoughtfully created and made to last. We have used waterless technology, cottonised hemp, wood pulp in the form of Tencel. We are trying to stay true to Levi’s value of durability. It is not at all fast-fashion, but it is fashion-forward.

Where is India on Levi’s growth map?

India is a key market for the brand and Asia as a whole continues to be a high-growth market for Levi’s. It’s a market in which the digital and innovation space continues to grow exponentially – and so our priorities of being brand-led, DTC first as a company and of diversifying our portfolio are executed through the lens of connecting with our fans in the ways they love to shop.

From a marketing lens, what more can we expect to see from Levi’s this year?

This year is a monumental one for LS&Co. as we celebrate 170 years of the company’s operations and 150 years since we first introduced our iconic Levi’s 501 jeans. As a brand, these two milestones will remain to be our focus this year and we may initiate some interesting collaborations and initiatives around them. Lastly, in the last few years, we have also focused on conversations around women – both through product and marketing efforts. We will continue to drive these conversations even this year, considering women’s swear is an important category for us as a brand.

Also Read: Skinny jeans still a great fit in shrinking economy, says Levi CEO

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Who is Asaram Bapu — the rape, murder and other cases against him

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asaram Bapu, or Asumal Sirumalani Harpalani, has been convicted of raping a former disciple today, January 31. This is not the first conviction for Asaram. He is already serving a life sentence in Jodhpur’s jail for raping a minor girl in 2013.

The 81-year-old was sentenced to life imprisonment for rape, criminal intimidation and wrongful confinement by Gandhinagar’s sessions court. The ex-disciple, a Surat-based woman, had accused Asaram of repeatedly raping her while she was at his ashram in Ahmedabad’s Motera.

Besides sexual assault cases, other criminal cases have also been filed against him.

Here is a list of criminal cases against Asaram:

Jodhpur rape case

In 2013, Asaram raped a 16-year-old girl at his Jodhpur ashram. The girl was a student from his ashram in Shahjahanpur, Uttar Pradesh. Asaram had brought her to the Jodhpur ashram to conduct a ritual that would “cure her of evil.” The girl accused him of molesting her, touching her inappropriately, asking her to perform oral sex on him and sexually assaulting her.

In 2018, he was convicted, along with two aides, and sentenced to life imprisonment under sections 342, 376, 506 and 509 of the IPC, as well as under Section 8 of the Protection of Children from Sexual Offences Act (POCSO) and sections 23 and 26 of the Juvenile Justice Act. Asaram appealed against the conviction in the Supreme Court and for the suspension of the life sentence, along with multiple bail pleas. All his bail pleas were rejected.

Surat rape case

After the 2013 rape case was reported and Asaram was put in judicial custody, two sisters came forward and accused the purported holy man and his son of sexually assaulting them. The elder sister accused Asaram of raping her between 1997-2006 at the Motera ashram, while the younger sister was raped by his son between 2002-2005.

The sisters also accused five others, including Asaram’s wife and daughter, of helping him exploit them. While Asaram’s son Narayan Sai was convicted and sentenced to life imprisonment in 2019, Asaram has only been sentenced today (January 31). His lawyers state that they would appeal the conviction in the Gujarat High Court.

Witness tampering

One reason why both the rape cases took so long to resolve is the fact that witnesses and the families of the victims in both cases were threatened, attacked and even killed by his followers though “without his knowledge.”

In the Jodhpur rape case, Sessions Judge Manoj Kumar Vyas and the SHO in charge of the case were threatened reportedly by his followers. Asaram’s personal physician, Rahul Sachan, was one of the witnesses in the Jodhpur case and was stabbed while in court when he was about to testify. He went missing after 2015. Another witness in the case, Kripal Singh, was murdered. In his dying statement, he accused Asaram’s followers of carrying out the attack before his death.

In the Surat case, two witnesses were shot and killed while another two were injured. The husband of the younger sister was stabbed in the back and face.

Black magic and child deaths

In 2008, two children had gone missing from Asaram’s Motera ashram. The bodies of the boys were later found mutilated. The parents accused Asaram and his followers of practising black magic and human sacrifice. However, the Narendra Modi-led Gujarat state government set up the Justice D.K. Trivedi Commission, which cleared Asaram and Narayan in the matter even though it blamed the ashram administration for negligence.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Economic Survey 2023: Gross tax mop-up already at 65% of target, CEA points to reforms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As India steers itself on the growth path amid various challenges, Chief Economic Advisor V. Anantha Nageswaran said in the Economic Survey 2023 that the “substantial reforms” in India’s taxation ecosystem post-2014 have removed the distortionary incentives from the economy. Tax revenue buoyancy has been sustained over the last two years, the survey said.

According to the survey, gross tax revenues have already reached 65 percent of the budgetary estimate at Rs 17.81 lakh crore during the first eight months of the current fiscal till November.

The survey said the growth in gross tax revenues mostly came from corporate and personal income tax collections. The survey also lauded reforms like GST, corporate tax cuts, exemption of sovereign wealth funds and pension funds from taxes, and removal of dividend distribution tax for reducing the tax burden on individuals and businesses. This has pushed the much-desired growth, giving confidence to the business community, it noted.

Also Read: Economic Survey 2023 estimates real GDP to be at 6-6.8%

Tax reforms, such as corporate tax cuts, were followed by the pandemic-led uncertainty and disruptions. Their impact on collections is gradually becoming visible in higher tax collections, the survey said.

Direct taxes alone have registered a growth of 26 percent from April to November 2022, enabled by corporate and personal income tax growth. During April-November 2022, the government’s gross tax revenue mop-up stood at Rs 17.81 lakh crore or 64.6 percent of the full-year target of Rs 27.58 lakh crore. Of this, direct tax collection is Rs 8.67 lakh crore and indirect tax collection is Rs 8.91 lakh crore.

Similarly, the Centre’s goods and services tax (GST) collection till November 2022 was Rs 5.57 lakh crore. This was 71.5 percent of the full year budgetary estimate of Rs 7.80 lakh crore. The survey has highlighted that tax growth curve is rising after nosediving in the pandemic-hit FY21.

Also Read: Economic Survey says India EV sales will hit 1 crore mark annually in seven years

Revenue receipts registered robust growth in 2021-22 led by a rebound in the collection of all major direct and indirect taxes (except excise duties) in FY22. “Last year’s revenue buoyancy momentum is continuing into the current year. The gross tax revenue registered a YoY growth of 15.5 percent from April to November 2022, and the net tax revenue to the Centre after the assignment to states grew by 7.9 per cent on a YoY basis,” the survey said.

On the GST front, the survey noted that the average monthly gross GST collection has increased from Rs 90,000 crore in FY18 to Rs 1.49 lakh crore in FY23. Evidence suggests that the indirect tax system has improved in the post-GST regime.

Direct tax reforms that have led to revenue buoyancy, include the introduction of technology-backed tax governance reforms for simplifying tax processes, enhancing compliance and improving fraud detection systems.

Also Read: Economic Survey 2023 | Domestic pharmaceutical market to reach $130 billion by 2030

Faceless assessment and appeal systems mean there is no need for a physical interface between taxpayers and the Income Tax Department. Data sharing  between CBDT and CBIC on an automatic and regular basis is a promising reform, and it would result in efficiency gains in the tax system. These reforms augur well for future economic growth and future resource mobilisation in the economy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Startup Digest: WhatsApp bats for pause in SC hearing, Indian startups witnessing reverse flipping: Economic Survey 2023 & more 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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WhatsApp’s privacy policy case continues in Supreme Court, bats for pause in hearing

Meta-owned WhatsApp has claimed that the Draft Data Protection Bill is expected to be presented in the upcoming budget session in parliament. The company is advocating for a pause in the Supreme Court hearing of the petition challenging their 2016 and 2021 privacy policies. They argue that waiting to see if the final bill overlaps with the reliefs sought in the petition will not cause any harm.

The case is being heard by a five-judge constitution bench, and the Centre has opposed the debate over the Data Protection Bill before the top court. The Supreme Court has questioned the petitioners on why the court should not wait to see the final version of the bill that will be tabled in parliament.

However, the petitioner argues that WhatsApp is discriminating against Indian users and is calling for a ban on the company from sharing user information with parent company Meta. In conclusion, the Supreme Court hearing on the petition challenging WhatsApp’s privacy policies continues, and the outcome of the case will have significant implications for data privacy and protection in India.

Also Read: Economic Survey 2023: India to remain fastest growing major economy in the world — A look at key highlights

Economic Survey makes a case for startups to shift domicile to India, calls it ‘reverse flipping’

The Economic Survey has made a case for startups to shift domicile to India and has recommended regulatory action and “solution –focused strategies” that will discourage startups from moving abroad in the search of a conducive regulatory environment.

The Survey observed that many Indian firms are establishing headquarters abroad, particularly in locations with favorable legal and tax systems. The survey notes that the process of “Flipping” refers to transferring the full ownership of an Indian company to a foreign entity, along with the transfer of its IP and data. This effectively converts the Indian firm into a 100 percent subsidiary of the foreign entity, with its founders and investors retaining ownership through the foreign entity by exchanging all shares.

As per the survey, startups often “Flip” early on due to commercial, tax, and personal considerations of their founders and investors. While, some companies “Flip” because their main market is overseas, others do so due to investor preferences or to access capital markets for better valuations and funding opportunities. In the past, better IP protection, tax treatment of licensing revenue, and flexible corporate structures have also been reasons for “Flipping”.

To accelerate the reverse flipping the Survey has suggested multiple steps to stakeholders and regulatory bodies. It has proposed a simplification of ESOP and other taxation. Additionally, it has also suggested making the capital flow easier and developing incubation programmes for better funding landscapes.

ReadyAssist acquires SpeedForce for $10M

Auto tech startup ReadyAssist has acquired multi-brand two-wheeler workshop chain SpeedForce for $10 million in a cash plus stock deal.

With this acquisition, ReadyAssist will become India’s largest chain of multi-brand two-wheeler workshops, the company said in a statement.

“ReadyAssist is very successful in operating a pan India roadside assistance and doorstep service to our 8,00,000 subscribed customers. This acquisition will help us extend the reach to our customers in their need for general periodic services and major repairs,” ReadyAssist CEO Vimal Singh SV said.

Starting with 300 workshops, the idea is to scale to over 1,000 workshops in the next one year including four-wheeler multi-brand outlets, he added.

Moat School gets undisclosed capital in Pre-Series A round

Edtech startup Moat School has raised an undisclosed capital in its Pre Series A funding round by a marquee investor Anurag Verma. The company will use fresh funds for business expansion and scalability plans.

The startup also plans to deploy the capital in scaling its state-of-the-art tech stack and foraying into new products and markets.

Moat School said it is aiming to cross Rs 5 crore-mark in revenue generation and a minimum 8X growth in the next 12-18 months. The firm also plans to onboard 2 lakhs+ students on the platform for Data Science and other new-gen tech courses. In addition, it has announced plans to onboard 100+ top corporates and entrepreneurs from top unicorns.

Byju’s is testing at-home one-on-one tuitions in K12: Report

Edtech major BYJU’S has launched a one-on-one home tuition pilot programme to access a new target group in the K-12 market. The home tuition programme has around 100 teachers and already hosted nearly 650 classes, as per a report by the Economic Times.

The new offering called Byju’s Home Tuitions, is currently available across all pin codes in the city, the report added. Currently, Byju’s is taking registrations for home tuitions only for science and maths. It has been running advertisements on social media for at least a week.

The hourly demo class is priced at Rs 500, which gets adjusted with the monthly fee of about Rs 6,000, without discount, for five days-a-week hourly class, it added.

Myntra onboards UK’s cosmetics brand Barry M

Barry M, UK’s colour cosmetics brand marks its foray into India in association with fashion ecommerce giant Myntra. Starting at Rs 500, the brand will be launching some of its most sought-after products, which include on-trend make-up such as eye-brow essentials, clickable eye shadows, high vis neon, metallic eyeliners, dazzle dust, lip plumpers, lip paints, lip rehab mask, contour, lip and cheek tints, glitters and fixers, a statement said.

Barry M will also have a dedicated Online Brand Store on the Myntra app and will leverage the platform’s social commerce proposition, Myntra Studio, and is likely to hold one M-Live session every month. To mark its India foray, the brand will also be offering 30% off as part of the launch offer, with an additional 5% off for Myntra Insiders, members of Myntra’s Loyalty Program.

Gupshup appoints Vartika Verma as senior director global marketing

Conversational engagement startup Gupshup has appointed Vartika Verma as the senior director of global marketing. Verma will lead the company’s overall marketing strategy and help drive strategic growth, innovation, and value for shareholders and customers worldwide, the firm said in a statement.

Prior to this, Verma was the vice president at Yellow.ai where she led their global marketing initiatives including entry to new markets, annual run rate (ARR) growth, and expansion. She has over 15 years of experience in areas such as technology, product, and growth marketing.

“With her deep experience in the conversational messaging space, I look forward to new ideas and opportunities she will bring into marketing at Gupshup,” said Beerud Sheth, CEO and Co-founder, Gupshup.

Groyyo partners with Seed Group; aims to clock $50M in revenue

Groyyo, a B2B supply chain enablement startup has partnered with UAE-based Seed Group to transform B2B manufacturing and sourcing processes with cutting-edge and innovative technologies.

The startup is aiming to empowering 20 million micro-manufacturers and giving them an opportunity to take their business global. The firm is also looking to expand its footprint to the UAE and the Middle East region, a statement said.

With this deal, Groyyo aims to clock $50 million in revenue from the Middle East in the next 12 months. Seed Group will provide Groyyo with a wider range of clients, access to top decision-makers in the Government and the private sectors.

Stanplus rebrands to RED.Health, launches four new verticals

StanPlus, a medical emergency response platform, has announced four new business verticals to create, build and offer a holistic emergency care network in the country. The firm will build these businesses under under a new identity — Red.Health.

To expand its current offerings, the company is also establishing a technology center within, called RED Edge, that will strengthen the existing technical support and work on new product development for all the new business verticals.

“The biggest challenge for EMS has been infrastructure and manpower. With the launch of our new verticals, we are embarking on a new endeavour to build India’s largest emergency network. Our mission is to build this through partnerships and training to deliver expert care with speed, empathy, and reliability,” said Prabhdeep Singh, Founder and CEO, RED.Health.

GLOBAL TECHNOLOGY & STARTUP NEWS

Twitter makes first interest payment on Musk buyout debt: Report

Twitter has made its first interest payment under Elon Musk after the billionaire took the social media company private last year using about $12.5 billion of debt, Bloomberg News reported.

Twitter paid a group of seven banks, led by Morgan Stanley, which became stuck with the debt after they were unable to sell it to outside investors, the report added.

Apart from the funds borrowed from a syndicate of banks including Morgan Stanley and Bank of America Corp, the Tesla boss has also offloaded shares in the electric-vehicle maker to fund his $44 billion takeover of Twitter.

Spotify’s user growth beats estimates, expects 500M listeners next quarter

Spotify has reported fourth-quarter results that beat expectations for both active users and subscribers, and forecast the number of listeners would reach 500 million next quarter.

The number of monthly active users rose to 489 million in the quarter, beating Spotify’s guidance and analysts’ forecasts of 477.9 million.

Premium subscribers, who account for most of the company’s revenue, rose 14% to 205 million, topping estimates of 202.3 million, according to IBES data from Refinitiv. Last week Spotify announced plans to layoff 600 employees as it sought to control its operating expenditure that grew at twice the speed of its revenue last year.

TikTok CEO to testify before US Congress over security concerns

TikTok Chief Executive Shou Zi Chew will appear before the US Energy and Commerce Committee in March, as lawmakers scrutinize the Chinese-owned video-sharing app.

Chew will testify before the committee on March 23, which will be his first appearance before a congressional committee, said Representative Cathy McMorris Rodgers, the Republican chair of the panel, in a statement on Monday.

The news comes as the House Foreign Affairs Committee plans to hold a vote next month on a bill aimed at blocking the use of TikTok in the United States over national security concerns.

FTX sues Voyager Digital to claw back $446M in 2022 loan payments

Bankrupt crypto exchange FTX sued crypto lender Voyager Digital, seeking to claw back $445.8 million in loan repayments that FTX made before collapsing into bankruptcy in November 2022.

FTX and Voyager both filed for bankruptcy amid a 2022 collapse in cryptocurrency markets, but Voyager’s bankruptcy preceded FTX’s filing by four months. After Voyager filed in July, it demanded repayment of all outstanding loans to FTX and its affiliate hedge fund Alameda Research.

FTX said in a court filing that on Alameda’s behalf, it paid Voyager $248.8 million in September and $193.9 million in October. FTX also made a $3.2 million interest payment in August, according to its court filings. Because those loan payments were made so close to FTX’s own bankruptcy filing, they are eligible to be clawed back and potentially used to repay other FTX creditors, according to FTX’s complaint.

Russian court fines Amazon’s Twitch $57,000 over Ukraine content

A Russian court has fined streaming service Twitch 4 million roubles ($57,000) for failing to remove what it said were “fakes” about Russia’s military campaign in Ukraine, the Interfax news agency reported.

Moscow has long objected to foreign tech platforms’ distribution of content that falls foul of its restrictions, with Russian courts regularly imposing penalties.

Facebook seeks to block $3.7Bn UK mass action over market dominance

Facebook has asked a London tribunal to block a collective lawsuit valued at up to 3 billion pounds ($3.7 billion) over allegations the social media giant abused its dominant position to monetise users’ personal data.

Meta is facing a mass action brought on behalf of around 45 million Facebook users in Britain. Legal academic Liza Lovdahl Gormsen, who is bringing the case, said Facebook users were not properly compensated for the value of personal data that they had to provide to use the platform.

Her lawyers said users should get compensation for the economic value they would have received if Facebook was not in a dominant position in the market for social networks.

But Meta said the lawsuit was “entirely without merit” and should not be allowed to proceed. Its lawyers said the claimed losses ignore the “economic value” Facebook provides.

Lovdahl Gormsen’s lawyers asked the Competition Appeal Tribunal to certify the case under the UK’s collective proceedings regime – which is roughly equivalent to the class action regime in the United States.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is the current crypto rally an echo bubble?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The broader crypto market is off to a great start in 2023. Top cryptocurrencies such as Bitcoin, Ethereum, Solana, and others have more than recovered from the FTX fiasco, with some coins even posting double- and triple-digit gains YTD. However, such turnarounds are often met with speculation and fear. 

For instance, when Bitcoin spiked earlier this month, market participants were quick to label the rally as a ‘bull trap’. Fortunately, the crypto market was able to sustain its growth, thus rendering the bull trap speculation obsolete. 

That brings us back to square one, with analysts still clamouring to explain this sudden trend reversal. Some market experts believe that the current trend reversal could point to a possible “echo bubble” and there is some evidence to back this notion. But what is an echo bubble, and how will it affect future prices? Tag along to find out.

What is an echo bubble?

An echo bubble is a premature market recovery after a much larger bubble has just burst. This sort of price action closely resembles the dead cat bounce chart pattern. While the name might sound pretty macabre, the reasoning behind this chart pattern is that even a dead cat can bounce a little after it has fallen from a substantial height. Therefore, if we look at this bounce on a graph, it may seem like a revival from a massive drop. However, it is just another bubble that, like all bubbles, will also burst and leave behind its fair share of damage. 

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However, unlike a dead cat bounce, echo bubbles usually take far longer to play out. For instance, Bitcoin rallied from the $1,000 mark in early 2017 to $20,000 a few months later, before falling to the $3,500 range in 2018. Following this bubble, Bitcoin began posting a revival in 2019, rising to around $12,000 before falling to $5,100 in early 2020. 

The rally in 2019 was later labelled as a “textbook echo bubble” by Mark Dow, a former IMF economist. This echo bubble began in April 2019 and only fizzled out by early 2020. This is unlike a dead cat bounce which usually only lasts a few days. Moreover, in an echo bubble, the extent of the upward trend and drawdown is much lower compared to the preceding bubble. 

For instance, in 2017 Bitcoin rallied nearly 1,900 percent (from $1,000 to $20,000). Whereas, in 2019, Bitcoin rallied 400 percent. In the 2017 bubble, Bitcoin fell from the $20,000 range down to the $3,500 mark by the end of 2018. Whereas, in the 2019 echo bubble, BTC fell from around $12,000 to a low of around $5,100 by early 2020.

Is the current crypto rally an echo bubble?

For starters, the timeline fits perfectly. Historically, echo bubbles usually occur one or two years after a large bubble has burst, as seen in the 2019 rally, which was an echo of the bull run experienced two years earlier. As such, 2021 saw the biggest Bitcoin bubble to date, with BTC touching an all-time high of $69,000 before plummeting to $15,000 a year later. Therefore, the sudden revival in 2023 fits perfectly into the timeline of previous echo bubbles.  

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Further, Lucas Outumuro, the head of research at IntoTheBlock, a crypto intelligence firm, highlighted 3 reasons why the current rally could be an echo bubble. Firstly, he states that the market cap of stablecoins is on the rise. He also states that, in November and December 2022, following the collapse of FTX, the price of futures contracts plummeted well below spot markets. However, that has changed in recent months, and as of this moment, the price of futures contracts has once again risen above the spot markets. 

Finally, Outumuro states that blue-chip NFTs are performing better than Ether. While the second-largest cryptocurrency by market cap has recorded 31 percent gains since the start of the year, eight out of the top ten NFT collections have still managed to outperform ETH. This revival is quite surprising given the plummeting sales volumes of NFTs towards the end of 2022. 

According to Outumuro, these three signs point to an increased risk appetite in the crypto market. This could prop up prices further, putting the crypto market “on track for another echo bubble like the one recorded in 2019.”

If this rally is indeed an echo bubble, the obvious question is where will the upward momentum end? Head of Digital Assets Trading at GoldenTree, Avi Felman, believes that the pinnacle of this supposed echo bubble could lie around the $27,000 mark. 

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“In 2019 the echo bubble was Bitcoin running off the lows ~341%. So if the ratio holds, Bitcoin could run ~74.6% off the lows which would be ~27k. ETHBTC in that scenario could be .085 which would have it ~2300,” read Felman’s tweet from January 13. 

Early Bitcoin proponent, Erik Voorhees has a more optimistic outlook. In a recently conducted Bankless podcast, Voorhees predicted that BTC could reach $40,000 in 2023. That’s a 155 percent increase from Bitcoin’s November 2022 low. 

Conclusion

An echo bubble is not necessarily a bad thing. For investors, an echo bubble can present an opportunity to make quick gains. It also fills the market with optimism after a large drawdown. 

However, it is very hard, if not impossible to spot an echo bubble. In most cases, these market conditions are identified after they have already occurred. Moreover, when it comes to cryptocurrencies, we all know how volatile the market can be. Therefore, it is important to conduct your own research and invest only as much as you can afford to lose. 

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jio launches 5G services in 34 cities, taking total count to 225 in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Jio on Tuesday launched 5G services in 34 more cities, expanding its connectivity further across India to 225 cities, so far.

With this, Reliance Jio became the first and only operator that launched 5G services most of these cities. The users would be invited to the Jio Welcome Offer and would get unlimited data with a speeds of up to 1 Gbps+, at no further cost, from today.

The company said that a 5G network rollout of such a scale was a first across the world and 2023 would be a landmark year for the country.

“Jio has achieved this milestone in just under 120 days since the Beta Trial launch and is well on its way to connect the entire nation with the transformational Jio True 5G services by December 2023,” a Jio spokesperson said.

Jio had earlier announced it had 50 cities across 17 states and Union Territories.

Meanwhile, in the December quarter, the telco’s profit went up 2.7 percent sequentially to Rs 4,638 crore, almost near the CNBC-TV18 poll estimate of Rs 4,650 crore. On a year-on-year basis, the profit rose 28.29 percent. Reliance Jio’s profit during the last quarter stood at Rs 4,518 crore.

Reliance Jio’s revenue for the three months stood at Rs 22,998 crore, rising 2.1 percent from the previous quarter and 18 percent from the corresponding period a year ago. This was Reliance Jio’s fourth consecutive quarter of revenue growth. The company said that the increase in revenue from operations was driven by a steady increase in both the subscriber base and average revenue per user (ARPU).

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian Hotels shares gain most in nine months after best ever quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Indian Hotels are trading with gains of 6.5 percent after the company reported a four-fold rise in consolidated net profit at Rs 403.56 crore in the third quarter ended December 2022 on the back of robust demand.

The company had posted a consolidated net profit of Rs 95.96 crore in the year-ago period, Indian Hotels Company Ltd (IHCL) said in a regulatory filing.

Profitability of the hotels chain was also aided by lower finance costs, higher other income and gains from the sale of land during the quarter.

Indian Hotels termed the results as its best ever quarter.

Consolidated revenue from operations during the quarter under review stood at Rs 1,685.8 crore as against Rs 1,111.22 crore in the corresponding period previous fiscal, it added. Total expenses were higher at Rs 1,248.62 crore in the third quarter, up from Rs 1,014.23 crore a year ago.

Buoyed by a strong demand in the third quarter, both leisure and business hotels in key domestic markets reported occupancy of over 70 percent and a rate growth of 27 percent as compared to pre-COVID levels, the company said.

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IHCL managing director and CEO Puneet Chhatwal said the company continued to report strong operational and financial performances across its businesses in Q3 resulting in an all-time high profit after tax.

“Robust demand across markets and segments, including our airline catering has led to all group companies reporting a positive PAT in Q3 across domestic and international operations,” company’s executive vice president and CFO Giridhar Sanjeevi said.

The revenue performance supported by scale benefits have enabled strong flow-through and record margins, he said, adding, “IHCL continues to report a healthy consolidated free cash flow of Rs 766 crore till date in FY 2022-23 and remains net cash positive.”

Chhatwal said IHCL has reached a milestone of over 250 hotels and is in line with its vision of being a 300-hotel portfolio by 2025.

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“In this financial year alone 30-plus hotels have been added to the pipeline and 14 hotels have opened, besides a strong growth in amã Stays & Trails with 108 homestays and Qmin with over 25 outlets,” Chhatwal added.

The demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket, global events like the ongoing G20 and recovery of inbound and corporate travel, he said.

“IHCL with its vast network of hotels spread across over 125 cities is well positioned to cater to this rising demand,” Chhatwal said.

Shares of Indian Hotels are trading 6.4 percent higher at Rs 320.4. The stock is up for the third straight day.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

OLX is reportedly looking to lay off 15% of its global workforce

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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OLX is reportedly laying off 15 percent of its global workforce. This layoff will impact nearly 1,500 employees.

According to a news report by The Financial Express, OLX will reduce its workforce across all countries, business units, and job functions.

As per its website, the Prosus-owned company has over 10,000 employees worldwide, with offices in India, Bulgaria, South Africa, Poland, and Ukraine.

“OLX is taking necessary measures to reduce its cost structure in light of changing macroeconomic conditions. Regrettably, this means we are reducing the size of our workforce across the company. We are sorry to part ways with these valuable contributors, but doing so is necessary to meet our future ambitions,” as reported by The Financial Express.

In 2020, OLX laid off close to 250 employees from its sales and support departments.

OLX’s latest job cuts come amid an ongoing wave of layoffs at tech companies around the world due to high inflation and recession fears.

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As per data by Layoffs.fyi so far in 2023 234 tech companies have laid off 75,912 employees. Big tech giants like Google, Microsoft, Meta and Amazon have announced job cuts and hiring freezes. In India too so far Indian startups have cut over 1,600 jobs in 2023.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow